GLOBAL MARKETS-Earnings outlook lifts equities; dollar up on economy view

* Dollar bounces for first day in four

* Alcoa (NYSE: AA - news) 's results boost sentiment, shares rise 3.5 percent

* Automaker shares lead rise in European equities

* Brent oil rises toward $108 a barrel on Ukraine worries

(Adds close of European bond, equity markets)

By Herbert Lash

NEW YORK (Frankfurt: HX6.F - news) , April 9 (Reuters) - Global equity markets rose on

Wednesday after better-than-expected corporate results boosted

sentiment on the outlook for first-quarter earnings, while the

dollar gained on optimism the U.S. economy will show growth as

it sloughs off the effects of a bitter winter.

The greenback's bounce was the first in four days.

Investors awaited the minutes of the latest Federal Reserve

meeting to be released later Wednesday. They are likely to show

that members of the Federal Open Market Committee generally

agreed on tapering the Fed's bond-buying program.

U.S. stocks rose for a second session, buoyed after Alcoa (TLO: AA-U.TI - news)

late Tuesday reported quarterly results that topped

analysts' expectations, even though the company's adjusted

profit fell due to declining aluminum prices.

Shares of Alcoa gained 3.5 percent to $12.97 and at

one point were the best performer among components of the

benchmark S&P 500 index.

Alcoa has long been the first S&P 500 company to report

results each quarter, and since aluminum is used by some key

industries, including the automotive, aerospace and construction

sectors, some see it as a bellwether for the earnings season.

Earnings for companies in the S&P 500 are projected to have

increased just 1 percent from last year's first quarter, Thomson

Reuters data showed. The forecast is down sharply from the start

of the year, when profit growth was estimated at 6.5 percent.

"These kinds of consolidation rallies really take time to

shake out the emotion that goes with both sides," said Rick

Meckler, president of hedge fund LibertyView Capital Management

in Jersey City, New Jersey.

"Earnings will really help give this market some forward

direction, but they are in front of us and haven't really hit

yet," he said.

The pan-European FTSEurofirst 300 index of leading

regional shares closed up 0.36 percent at 1,338.12, while MSCI (NYSE: MSCI - news) 's

all-country equity index rose 0.28 percent.

Gains in Europe were led by automakers, although some

traders said caution ahead of the European earnings season could

curb near-term progress.

The Dow Jones industrial average rose 81.21 points,

or 0.5 percent, to 16,337.35. The S&P 500 gained 7.65

points, or 0.41 percent, to 1,859.61 and the Nasdaq Composite

added 36.557 points, or 0.89 percent, to 4,149.543.

The dollar rebounded from one of its worst performances

against the yen as the outlook for the greenback brightened on

expectations for stronger economic data.

The dollar posted its largest one-day fall versus the yen in

more than seven months on Tuesday as investors bought back the

Japanese currency after the Bank of Japan held off on additional

monetary easing.

"Our view going into 2014 is broad-based dollar rally

predicated on the acceleration of the U.S. economy and rising

U.S. rates," said Mark McCormick, currency strategist at Credit

Agricole in New York.

After hitting lows of 101.52 yen in U.S. trade on

Tuesday, the dollar recovered to trade 0.2 percent higher at

101.99. The euro was up 0.27 percent against the yen at 140.80

.

Against the dollar, the euro was up 0.09 percent at

$1.3806.

U.S. Treasuries prices fell as traders trimmed their bond

holdings in advance of a $21 billion auction of 10-year notes

and the Federal Reserve's release of the record of its policy

meeting last month.

The benchmark 10-year Treasury note was down

10/32 in price to yield 2.7170 percent.

"Treasuries have had a good run. There's some risk with this

week's supply," said Robert Tipp, chief investment strategist at

Prudential Fixed Income in Newark, New Jersey.

Brent crude rose toward $108 a barrel as rising tension

between Russia and Ukraine overshadowed the bearish impact of a

substantial rise in crude oil stockpiles in the United States.

While the Ukraine crisis may not directly impact global oil

supplies and trade, the risk premium on oil is rising as

investors worry the Kremlin (Berlin: KMLK.BE - news) 's stand-off with the West could

quickly take a turn for the worse.

Brent crude rose 15 cents to $107.82 a barrel. U.S.

oil rose 83 cents to $103.39.

(Reporting by Herbert Lash; Additional reporting by Marc Jones

in London; Editing by Dan Grebler and Leslie Adler)